Banks Rethink Executive Pay

Directors at J.P. Morgan Chase & Co. and Citigroup Inc. are wrestling with new approaches to executive compensation, in a bid to respond to a series of management miscues this year, said people close to the institutions.

At J.P. Morgan, the biggest U.S. bank by assets, directors are considering lower 2012 bonuses for Chief Executive James Dimon and other top executives in the wake of a multibillion-dollar trading disaster, said people close to the discussions. But they also are grappling with the question of how to...